Supply contraction coupled with ample order schedules, silicone continues to rise mildly [SMM Silicone Weekly Review]

Published: Aug 20, 2026 18:13

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[SMM Silicone Weekly Review: Supply Contraction and Ample Order Scheduling Drive Mild Uptick in Silicone] This week, the price center of China's silicone DMC continued to edge up, with the range quoted at 13,200-13,800 yuan/mt. The industry's joint production schedule expectations, combined with the gradual digestion of low-priced supply in the market, pushed silicone monomer enterprises to raise their offers. On the supply side, some monomer plants underwent maintenance and reduced output this week, leading to a WoW edge down in overall operating rates. Currently, monomer plants have relatively ample order scheduling, with industry pre-sales orders scheduled from late August to early September. Supported by both low inventory levels and full order scheduling, enterprises held prices firm. Overall, the short-term outlook for China's DMC market is expected to continue a mild and gradual rise.

SMM August 20 News:

Cost: On August 20, #421 silicon (used in silicone) in east China averaged 9,550 yuan/mt, up 50 WoW; #421 silicon in east China averaged 9,500 yuan/mt, up 150 WoW. This week, silicon metal prices were firm, with suppliers' quotes rising WoW. Downstream players mostly held a wait-and-see sentiment, with cautious procurement, and the market mainly saw just-in-time transactions. This week, methyl chloride prices were raised, with market average price around 3,100 yuan/mt, and the comprehensive production cost of silicone monomer enterprises rose WoW.

DMC: This week, the price center of China domestic DMC continued to move up, with the quote range at 13,200-13,800 yuan/mt. The joint production schedule expectations combined with the gradual digestion of low-priced supply in the market led to price increases by silicone monomer enterprises. On the supply side, some monomer plants conducted maintenance and reduced loads this week, leading to a slight WoW decline in overall operating rates. Currently, monomer plants have ample order backlogs, with pre-sale orders ranging from late August to early September. Supported by both low inventory levels and full order schedules, enterprises are determined to hold prices firm. Overall, the domestic DMC market is expected to continue a mild and gradual uptrend in the near term.

Silicone oil: This week, the transaction price range of conventional viscosity dimethyl silicone oil reached 14,700-15,500 yuan/mt, with an average price of 15,100 yuan/mt, up WoW. Driven by the cost-side raw material DMC price increase and the market's firm-price sentiment, manufacturers' willingness to hold prices firm strengthened. On the demand side, downstream clients steadily released just-in-time procurement, and silicone oil enterprises' inventory continued destocking.

107 silicone rubber: This week, the market price of conventional viscosity 107 silicone rubber showed an upward trend with firm pricing, ranging from 13,700 to 14,000 yuan/mt. Quotes rose following the cost transmission of DMC, with manufacturers mainly delivering orders. Available-for-sale inventory remained low, and enterprises had strong willingness to hold prices firm. On the demand side, downstream players had ample stockpiling earlier, and currently they mainly consumed their own inventory.

MVQ: This week, the market price of MVQ reached 14,200-14,500 yuan/mt. On the cost side, the price of raw material DMC continued to rise, providing cost support for MVQ, and MVQ quotes followed suit. On the demand side, most enterprises currently mainly made just-in-time procurement for restocking, with cautious purchasing.

This week, monomer enterprises had ample order backlogs, with weak industry operating rates in late August, and the supply-side contraction further strengthened price expectations. Silicone enterprises had firm price-holding sentiment, coupled with a slight uptick in cost-side silicon metal and methyl chloride prices providing support. It is expected that silicone product prices will remain stable with a strengthening trend in the near term, with the center edging up.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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